Adobe 2009 Annual Report Download - page 110

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
110
Summary of Performance Shares
The following table sets forth the summary of performance share activity under our 2009 Program for fiscal 2009 (in
thousands):
Shares
Granted
Maximum
Shares
Eligible
to Receive
Beginning outstanding balance ...........................................................................................................
—
—
Awarded ..............................................................................................................................................
559
643
Forfeited ..............................................................................................................................................
(7
) (8
)
Ending outstanding balance ................................................................................................................
552
635
However, the performance metrics under the 2009 program were not achieved and therefore no shares will be awarded
under the grants noted above.
In the first quarter of fiscal 2009, the Executive Compensation Committee certified the actual performance achievement
of participants in the 2008 Performance Share Program (the “2008 Program”). Based upon the achievement of goals outlined
in the 2008 Program, participants had the ability to receive up to 200% of the target number of shares originally granted.
Actual performance resulted in participants achieving approximately 124% of target or approximately 1.0 million shares for
the 2008 Program. Shares under the 2008 Program vested 25% in the first quarter of fiscal 2009, and the remaining 75% vest
evenly on the following three annual anniversary dates of the grant, contingent upon the recipient’s continued service to
Adobe.
The following table sets forth the summary of performance share activity under our 2006 through 2008 programs, based
upon share awards actually achieved, for fiscal 2009 and fiscal 2008 (in thousands):
2009
2008
Beginning outstanding balance ..................................................................................................
383
—
Achieved ....................................................................................................................................
1,022
993
Released .....................................................................................................................................
(382
)
(480
)
Forfeited .....................................................................................................................................
(73
) (130
)
Ending outstanding balance .......................................................................................................
950
383
The total fair value of performance awards vested during fiscal 2009 and 2008 was $7.7 million and $16.7 million,
respectively.
Information regarding performance shares outstanding at November 27, 2009 and November 28, 2008 is summarized
below:
Number of
Shares
(thousands)
Weighted
Average
Remaining
Contractual
Life
(years)
Aggregate
Intrinsic
Value(*)
(millions)
2009
Performance shares outstanding ........................
950
1.05
$
33.6
Performance shares vested and expected to vest ...........
818
0.97
$
28.8
2008
Performance shares outstanding ........................
383
1.20
$
8.9
Performance shares vested and expected to vest ...........
323
1.10
$
7.4
_________________________________________